Activision to Defend Against Suit

Activision, Inc. announced today that it strongly denies allegations from a recent class-action lawsuit brought against the publisher on March 5, and intends to "vigorously defend" its case.

The lawsuit, which alleges that Activision purposefully misreported its earnings for the period between the December 2000 and December 2002 quarters, was filed in Southern California by class-action firm Milberg Weiss on behalf of the Construction Industry and Carpenters Joint Pension Trust for Southern Nevada.

Millberg Weiss claims in their statement that Activision "provided the market with rosy reports about the company's actual and projected future results," supposedly in order to cause Activision's share prices to balloon to over 300% of what would be expected. At that point, the suit alleges, the defendants cashed out in a frenzy of insider trading.